Even Wealthy Investors in Cheongdam and Apgujeong Are Turning to Stocks After Selling Homes: "When Should I Buy Samsung and SK hynix?" [Investment Strategies of the Wealthy] ②

Interview With Jihye Kim, Head of Apgujeong Wealth Management Center at Mirae Asset Securities
Traditional Wealthy Clients Weighing Timing for Samsung Electronics and SK hynix
Balancing Domestic and Overseas Investment Proportions

"These days, wealthy individuals in Apgujeong-dong and Cheongdam-dong are increasingly concerned about ways to shift their real estate assets into financial assets."

Jihye Kim, Managing Director and Head of the Apgujeong Wealth Management Center at Mirae Asset Securities Investment Center, stated in a recent interview with The Asia Business Daily, "Due to government real estate policies such as heavy taxation on multiple home ownership and lending regulations, there has been a vibrant movement of funds in the region, with clients reallocating proceeds from property disposals into financial assets."

Jihye Kim, Managing Director and Head of the Apgujeong Wealth Management Center at Mirae Asset Securities Investment Center, is being interviewed by The Asia Business Daily at the Apgujeong Center in Gangnam-gu, Seoul. Photo by Hyunmin Kim

Even the Wealthy in Apgujeong Are Moving Large Amounts into Stocks

Given the nature of Apgujeong-dong and Cheongdam-dong, which are home to many traditional wealthy families, there are a significant number of clients who own multiple properties. Many clients have sold their properties in response to government real estate measures, and the proceeds from these sales are now being transferred into the capital markets.

Kim emphasized, "As the reconstruction of Apgujeong apartments gains momentum, there is a higher likelihood that real estate assets will be converted into cash or investment assets. We are absorbing these funds by offering Mirae Asset's unique comprehensive solutions, which encompass not only investment consulting but also business succession, inheritance, gifts, and tax savings."

The asset allocation strategy proposed by Kim is clear: build portfolios around two main pillars—global growth companies and stocks that benefit from government policy. Recently, she has been maintaining a domestic-to-overseas ratio of about 4:6 or 5:5. While last year saw pronounced growth centered on U.S. big tech companies, this year the allocation of domestic blue-chip stocks such as Samsung Electronics and SK hynix has increased in anticipation of improved semiconductor earnings. For overseas investments, in addition to the United States, she is also diversifying into emerging markets such as China and India to achieve strong returns.

Kim added, "High-net-worth individuals are heavily investing in semiconductors, power equipment, and shipbuilding stocks that are leading performance improvements in the domestic market, and in the U.S., there is a focus on companies with growth supported by factors such as artificial intelligence (AI) power infrastructure. In addition, companies expected to undergo changes due to government policies like separate taxation on dividends and mandatory share buybacks are also being actively incorporated into portfolios."

The primary focus of high-net-worth clients remains the semiconductor sector, which has been leading the Korean stock market, particularly Samsung Electronics and SK hynix. Kim shared that the most frequent question from clients recently is, "When should I buy and sell Samsung Electronics and SK hynix?" Other stocks she views positively include Samsung Electro-Mechanics and those related to power infrastructure. Kim commented, "With the growing demand for AI, earnings in sectors such as substrates, represented by Samsung Electro-Mechanics, are expected to improve. Sectors related to AI power infrastructure, where profitability has been proven, are also promising."

Assessing Risks and Appropriately Allocating Assets  

Kim has also shown a forward-thinking perspective on virtual assets. She noted, "Virtual assets are evolving from speculative assets into alternative assets within the institutional framework. Mirae Asset plans to offer integrated management that breaks down the barriers between traditional financial assets and digital assets."

Since joining Mirae Asset Securities in 2001, Kim has spent more than 20 years working in the field, and her investment philosophy is rooted in 'Client First.' Her top priority is to manage clients' retirement assets with stability from their perspective. She reiterated that 'asset allocation' is the key to weathering downturns, such as the global financial crisis and COVID-19 market shocks.

"Concentrating on a single stock is unsustainable. The only way to minimize client complaints during downturns and maximize returns in upturns is to assess market risks and allocate assets appropriately."

Kim concluded, "I feel the greatest sense of fulfillment when the company's growth aligns with client returns. Taking into account the unique characteristics of the Apgujeong area, we will further enhance customized, hands-on services such as pension consulting for retired executives."

This content was produced with the assistance of AI translation services.